Management style affects fund decision

BOSTON (MarketWatch) -- Andrew Gogerty, a mutual fund analyst at Morningstar Inc., says that investors should be looking for management styles more than just asset categories, noting that what frequently separates the best funds from the average ones is the unique approach of the manager.

In a radio interview with Chuck Jaffe, MarketWatch senior columnist, he said that funds with "differentiated strategies and moderate costs" are worth holding onto for as long as management takes responsibility for its performance rather than offering excuses for those times when the strategy is at odds with the market.

Gogerty used that logic to put hold recommendations on two mutual funds which only earn two stars on his firm's rating system, noting that the approach of the manager has a lot to do with the decision: Wasatch Heritage Growth
WAHGX
and Thompson Plumb Growth
THPGX, -1.80%

Gogerty also recommended buying Fidelity Mid-Cap Stock
FMCSX, -1.41%
Janus Growth & Income
JAGIX, -1.53%
and Janus Research
JARFX
But he noted that investors almost certainly want to stick with just one of the Janus funds, saying he favored Growth & Income.

In another interview, Charles Rotblut, senior market analyst for Zacks.com, was bullish on Host Hotels and Resorts
HST, -1.70%
noting that the largest hospitality REIT has a strong growth forecast that should lead to hitting a target price of $26 -- up about 15% from current levels -- within six months.

Rotblut was bearish on U.S. BioEnergy
USBE
suggesting that the ethanol producer is in a business where competition and demand changes will make for slow going, dropping the stock by more than 10% to a target price of $9 over the next six months.

Jaffe's radio show regularly features reviews of stocks and mutual funds suggested by MarketWatch readers; to request a stock or mutual fund for review, send your name, hometown and the ticker symbols that interest you to Chuck Jaffe.

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